Mar 31, 2021
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of BAJAJ STEEL INDUSTRIES LIMITED (''the Company''), which comprise the Balance Sheet as at 31 March 2021, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and Statement of Cash Flow for the year then ended, and Notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our Information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (''Act'') in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act, of the state of affairs (financial position) of the Company as at March 31, 2021, and profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw attention to Note 34 in the financial statements, which describes the economic consequences the company is facing as a result of COVID-19.
Our opinion is not modified in respect of this matter.
Information other than the Financial Statements and Auditor''s Report thereon
The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor''s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those charged with Governance for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (financial performance including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Ind AS specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
That Board of Directors are also responsible for overseeing the company''s financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(I) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of
management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The company could not disclose the information required under micro, small and medium Enterprises Development Act, 2006 [Note 33]
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss (Including other comprehensive income), the statement of changes in equity and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2021 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2021 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the
Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(h) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The financial statements has, to the extent ascertainable, disclosed the impact of pending litigations on the financial position of the Company - Refer Note 24 to the financial statements; ;
ii. the Company does not have any material foreseeable losses on long term contracts including derivative contracts which would impact its financial position;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
For VMSS & Associates Chartered Accountants Firm Registration No. 328952E
Aditya Sethia Partner
Membership NO.311293 UDIN: 21311293AAAAIJ1522
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s BAJAJ STEEL INDUSTRIES LIMITED (the Company), which comprise the balance sheet as at 31 March 2018, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Company s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ( the Act ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Basis of Qualified Opinion
The company is not disclosing the information required under micro, small and medium Enterprises Development Act, 2006 [Note 36]
Opinion
In our opinion and to the best of our information and according to the explanations given to us except for the effects of matter described in the Basis of Qualified Opinion paragraph, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31, March 2018 and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
In view of the management s opinion, no provisioning for impairment of assets is required to be done in respect of the company s investment in its wholly owned subsidiary M/s Bajaj Coneagle LLC, USA amounting to USD 1668000 (equivalent to Rs.10.26 crs). [Refer Note 26(b)]. Further with effect from 1st January, 2018 the Steel Division of the Company has changed its method of accounting from Written Down Value Method (WDV) to Straight Line Method (SLM) [Refer Note 34]
Our opinion is not modified in respect of the said matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2016 ( the Order ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. . As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B ; and
(g) with respect to the other matters to be included in the Auditor s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The financial statements has, to the extent ascertainable, disclosed the impact of pending litigations on the consolidated financial position of the Company Refer Note 25 to the financial statements; ;
ii. the Company does not have any material foreseeable losses on long term contracts including derivative contracts which would impact its financial position;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - A TO THE AUDITORS REPORT
The Annexure referred to in Independent Auditors Report to the members of the Company on the standalone financial statements for the year ended 31 March 2018, we report that:
(i) (a) According to the information and explanations given to us proper records showing full Particulars including quantitative details and situation of fixed assets is being maintained by the company.
b) According to the information and explanation given to us, all the fixed assets including capital work in progress have not been physically verified by the management during the year nor there is a regular program of verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) According to the information and explanations given to us, the management has conducted physical verification of inventory at reasonable intervals during the year which, in our opinion, is reasonable having regard to the size of the company and nature of its business. No material discrepancies were noticed on such verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms or parties covered in the register maintained u/s 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and securities made by the company.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
(vi) As certified by a Cost Accountant, the Company has maintained Cost records for the year under review, as prescribed under sub section (1) of section 148 of the Companies Act, 2013 to the extent applicable to the Company. We have however, not made a detailed examination of such records.
(vii) (a) According to the records of the company, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, and no such statutory dues were outstanding as at the last day of the financial year under review for a period of more than six months from the date they became payable.
(b)According to the information and explanations given to us, there are no dues of income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess, as applicable, which have not been deposited on account of any dispute except as detailed in Annexure-I.
(viii) In our opinion and according to the information and explanations given to us, the Term loans have been applied for the purpose for which they were obtained.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year under review.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees have been noticed or reported during the year.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act and the details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
(xvi) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
ANNEXURE - B TO THE AUDITORSâ REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ( the Act )
We have audited the internal financial controls over financial reporting of M/s Bajaj Steel Industries Limited ( the Company ) as of 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management s Responsibility for Internal Financial Controls
The Company s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Place: Nagpur For VMSS & Associates
Date: 30th May, 2018. Chartered Accountants
Firm Registration No. 328952E
Aditya Sethia
Partner
Membership NO.311293
Mar 31, 2016
AUDITOR''S REPORT (STANDALONE)
To the Members of M/s Bajaj Steel Industries Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s BAJAJ STEEL INDUSTRIES LIMITED (the Company), which comprise the Balance Sheet as at March 31, 2016, the statement of Profit and and cash flow statement, for the year ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ( the Act ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standard specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Basis of Qualified Opinion
The company is not disclosing the information required under micro, small and medium Enterprises Development Act, 2006 [Note 29 (5)] and expenditure towards Corporate Social Responsibility has not been incurred as required u/s 135 of the Companies Act, 2013.[Note 29(8)].
Opinion
In our opinion and to the best of our information and according to the explanations given to us except for the effects of matter described in the Basis of Qualified Opinion paragraph, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor s Report) Order, 2016 ( the Order ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B ; and
(g) with respect to the other matters to be included in the Auditor s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The financial statements has, to the extent ascertainable, disclosed the impact of pending litigations on the consolidated financial position of the Company Refer Note 29(2) to the financial statements; ;
ii. the Company does not have any material foreseeable losses on long term contracts including derivative contracts which would impact its financial position;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditors Report to the members of the
Company on the standalone financial statements for the year ended 31 March 2016,
we report that:
(i) (a) Proper records showing full particulars including quantitative details andsituation of fixed assets are being updated by the company.
b) According to the information and explanation given to us, all the fixed assets including capital work in progress have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion is reasonable having regard to the size of the company and nature of its assets. As explained, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company
(ii) According to the information and explanations given to us, the management has conducted physical verification of inventory at reasonable intervals during the year which, in our opinion, is reasonable having regard to the size of the company and nature of its business. No material discrepancies were noticed on such verification.
(iii) The Company has not granted any loan, secured or unsecured to companies, firms or parties covered in the register maintained u/s 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investments, guarantees and securities made by the company.
(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Companies Act, 2013 Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).
(vi) As certified by a Cost Accountant, the Company has maintained Cost records for the year under review, as prescribed under sub section (1) of section 148 of the Companies Act, 2013 to the extent applicable to the Company. We have however, not made a detailed examination of such records.
(vii)(a) According to the records of the company, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, and no such statutory dues were outstanding as at the last day of the financial year under review for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess, as applicable, which have not been deposited on account of any dispute except as detailed in Annexure-I.
(viii) In our opinion and according to the information and explanations given to us, the Term loans have been applied for the purpose for which they were obtained.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year under review.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees have been noticed or reported during the year.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act and the details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
(xvi) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure 1 as referred in clause [vii lb)] of the Annexure to our Report of even date for the star ended 31st March, 2C16 |
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Name of the Statute |
Nature of the Dues |
Amount (Lacs) |
Relating to the year |
Forum where dispute Pending |
Central Sales Tax Act, 1956 |
Non submission of Forms |
2.16 |
2001-2002 |
Maharashtra Sales Tax Tribunal (Mumbai) |
Central Sales Tax Act, 1956 |
Non submission of Forms |
1.83 |
2002-2003 |
Maharashtra Sales Tax Tribunal (Mumbai) |
Central Sales Tax Aft, 1956 |
Non submission of Forms |
0.00 |
2003-2004 |
Deputy Commissioner, Sales Tax, Nagpur |
Bombay Sale* Tax Act, 1956 |
Non submission of Forms |
1.75 |
2003-2004 |
Deputy Commissioner. Sales Tax, Nagpur |
Central Excise Act, 19 4 |
Duty on material cleared after Job Work |
0.43 |
0ct-03 to Apr-2004 |
Assistant Commissioner, Chindwara |
The Customs Act, 1962 |
Duty and Penalty on import of material |
136.60 |
2002-2003 & 2003-2004 |
CESTAT, Mumbai |
Madhya Pradesh Commercial Tax Act, 1994 |
Demand on regular assessment |
0.00 |
2002-2003 |
Assistant Commissioner, Commercial Tax |
Mulhva Pradesh Entry Tax Act, 1916 |
Entry Tax on Stock transfer goods. |
0.38 |
2010-2011 |
Deputy Commissioner, Commercial Tax 1 Appeal) Chindwara |
Central Excise Act, 1944 |
Nonpayment of Excise duty on Hvdrolie Oil. |
89.36 |
May, 2009 to Oct. 2014 |
The Additional Commissioner of Central Excels Custom iv Service Tax, Ngp-1 |
Central Sales Tax Act, 1956 |
Non submission of Forms |
0.54 |
2006-2007 |
Deputy Commissioner, Commercial Tax (Appeal) Chindwara |
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ( the Act )
We have audited the internal financial controls over financial reporting of M/s Bajaj Steel Industries Limited ( the Company ) as of 31st March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management s Responsibility for Internal Financial Controls
The Company s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
Place: Nagpur For B. CHHAWCHHARIA & CO.
Date: 28th May, 2016. Chartered Accountants
Firm Registration No.305123E
Ketan Chhawchharia
Partner
Membership No. 63422
Mar 31, 2015
We have audited the accompanying financial statements of M/s BAJAJ
STEEL INDUSTRIES LIMITED (The Company), which comprise the Balance
Sheet as at March 31, 2015, Statement of Profit and Loss then ended,
the Cash Flow Statement, and a summary of significant accounting
policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial control system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 issued
by the Central Government of India in terms of section 143 of the Act,
we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March,2015 taken on record by the Board of
Directors, none of the directors is disqualified as on31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has, to the extent ascertainable, disclosed the impact
of pending litigations on its financial position in its financial
statements - Refer Note 29 to the financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Place: Nagpur For B. CHHAWCHHARIA & CO.
Chartered Accountants
Date : 27th May, 2015.
Firm Registration No.305123E
Ketan Chhawchharia
Partner
Membership No. 63422
BAJAJ STEEL INDUSTRIES LIMITED
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 of our Report of even date for the year
ended 31st March, 2015.
(i) a) Proper records showing full particulars including quantitative
details and situation of fixed assets are being updated by the company.
b) Some of the Fixed Assets were physically verified during the year by
the Management in accordance with a program of verification which, in
our opinion, provides for physical verification of fixed assets at
reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such
verification.
(ii) a) According to the information and explanation given to us,
physical verification of inventory has been conducted by the management
at reasonable intervals.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory.
(iii) The Company has not granted any loan, secured or unsecured to
companies, firms or parties covered in the register maintained u/s 189
of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and Inventories and for sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weakness, if any, in internal
control system.
(v) The Company has not accepted any deposits from the public within
the meaning of Sections 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there-under during the
year under review.
(vi) As informed to us, the Company is maintaining cost records as
specified under section 148(1) of the Companies Act, 2013, read with
Companies (Cost Accounting records) Rules, 2011, to the extent
applicable to the Company. We have, however, not made a detailed
examination of such records.
(vii) In our opinion and according to the information and explanations
given to us:
a) The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Employees' State Insurance, Income Tax,
Sales Tax, Service Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and
other statutory dues, as applicable, with the appropriate authorities.
b) There are no disputed dues of sales tax, income tax, custom duty,
wealth tax, service Tax, excise duty or cess, as applicable, which have
not been deposited on account of any disputes except as detailed in
Annexure-I.
c) The Company has transferred the amount 'as applicable' to investor
education and Protection fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made there
under.
(viii) There are no accumulated losses at the end of the financial
year. The Company has not incurred any cash loss in the financial year
under review and also in the preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institution or banks.
(x) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
(xi) In our opinion and according to the information and explanations
given to us, the Term loans have been applied for the purpose for which
they were obtained.
(xii) According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by the Company has
been noticed or reported during the year.
Annexure 1 as referred in clause [ix (b)] of the Annexure to our Report
of even date for the year ended 31st March, 2015
Name of the Statute Nature of the Dues Amount
(Lacs)
Central Sales Tax Act, 1956 Non submission of Forms 2.16
Central Sales Tax Act, 1956 Non submission of Forms 1.83
Central Sales Tax Act, 1956 Non submission of Forms 7.09
Bombay Sales Tax Act, 1956 Non submission of Forms 2.75
Central Excise Act, 1944 Duty on material cleared
after 0.43
Job Work
The Customs Act, 1962 Duty and Penalty on import
of 136.60
material
Madhya Pradesh Commercial Demand on regular
assessment 0.27
TaxAct, 1994
Madhya Pradesh Entry Tax Entry Tax on Stock
transferd 0.38
Act, 1976. goods.
Madhya Pradesh Entry Tax Entry Tax on Stock
transferd 0.06
Act, 1976. goods.
Income Tax Act, 1961 Demand under Section 143(3)
of the Income TaxAct, 1961.20.56
Central Sales Tax Act,1956 Non submission of Forms 0.54
Name of the Statute Relating Forum where dispute
to the year Pending
Central Sales Tax,1956 2001-2002 Maharashtra Sales Tax
Tribunal (Mumbai)
Central Sales Tax Act,1956 2002-2003 Maharashtra Sales Tax
Tribunal (Mumbai)
Central Sales Tax act,1956 2003-2004 Deputy Commissioner,
Sales Tax, Nagpur
Bombay Sales Tax Act,1956 2003-2004 Deputy Commissioner,
Sales Tax, Nagpur
Central Excise act,1944 Oct-03 Assistant Commissioner
to Apr-2004 Chindwara
The Customes Act,1962 2002-2003 & CESTAT, Mumbai 2003-2004
Madhya Pradesh Commercial 2002 - 2003 Assistant Commissioner,
Tax Act,1994 Commercial Tax
Madhya Pradesh Entry Tax 2010-2011 Deputy Commissioner,
Act,1976 Commercial Tax (Appeal)
Chindwara
Madhya Pradesh Entry Tax 2011-2012 Deputy Commissioner,
Act,1976 Commercial Tax (Appeal)
Chindwara
Commissioner of Income Tax
Income Tax act,1961 2008-2009 (Appeal)
Central sales Tax Act,1956 2006-2007 Deputy Commissioner,
Commercial Tax (Appeal)
Chindwara
Place: Nagpur
For B. CHHAWCHHARIA & CO.
Chartered Accountants
Date : 27th May, 2015.
Firm Registration No.305123E
Ketan Chhawchharia
Partner
Membership No. 63422
Mar 31, 2014
We have audited the accompanying financial statements of M/s Bajaj
Steel Industries Limited, (The Company) which comprise the Balance
Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 (''the
Act'') read with the General Circular 15/2013 dated 13 September 2013 of
the Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
2. As required by section 227(3)of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c) the Balance Sheet and Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 read with the General Circular 15/2013
dated 13 September 2013 of the Ministry of Corporate Affairs in respect
of Section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT
Referred to in paragraph 1 of our Report of even date for the year
ended 31st March, 2014.
(i) a) As informed, proper records showing full particulars including
quantitative details and situation of fixed assets are being compiled
by the Company.
b) Some of the Fixed Assets were physically verified during the year by
the Management in accordance with a program of verification which, in
our opinion, provides for physical verification of fixed assets at
reasonable intervals. According to the information and explanation
given to us, no material discrepancies were noticed on such
verification.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed substantial part of its fixed
assets during the year.
(ii) a) According to the information and explanation given to us,
physical verification of inventory has been conducted by the management
at reasonable intervals.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory.
(iii) The Company has not granted/taken any loan, secured or unsecured,
to/from companies, firms or parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(Iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weakness, if any, in internal
control system.
(v) a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 are being updated in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions that were made in pursuance of contracts
or arrangements that need to be entered into the register maintained in
pursuance of Section 301 of the Companies Act, 1956 and aggregating
during the year to Rs. 5,00,000/- or more, in respect of each party,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by
Reserve Bank of India and the provisions of Sections 58A, 58AA or other
relevant provision of the Companies Act, 1956 and the rules framed
thereunder with regard to the deposits accepted from the public.
(VII) In our opinion and according to the information and explanations
given to us, the Company has a formal internal audit system
commensurate with the size of the Company and nature of its business.
(viii) As informed to us, the Company is maintaining cost records as
specified under section 209(1)(d) of the Companies Act, 1956, read with
Companies (Cost Accounting records) Rules, 2011, to the extent
applicable to the Company. We have, however, not made a detailed
examination of such records.
(Ix) In our opinion and according to the information and explanations
given to us:
a) The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues,
as applicable, with the appropriate authorities.
b) There are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess, as applicable, which have not been
deposited on account of any dispute except as detailed in Annexure I.
(x) There are no accumulated losses in the Company and the Company has
not incurred any cash loss in the year under review or in the
immediately preceding year.
(xl) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund ora nidhi mutual benefit
fund/society.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. All the Shares and Securities held as
investments are in company''s own name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company for the year
under review, we report that no funds raised on short term basis have
been used for long term investments.
(xviii) The company has not made any preferential allotment of shares
during the year under review to Companies, persons or parties covered
u/s 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year under
review.
(xx) The Company has not raised any money by public issue during the
year under review.
(xi) According to the information and explanations given to us and to
the best of our knowledge and belief, no fraud on or by the company has
been noticed or reported during the year.
Annexure 1 as referred in clause [ix (b)] of the Annexure to our Report
of even date for the year ended 31st March, 2014
Name of the Statute Nature of the Dues Amount Relating
(Lacs) to the
Year
Central Sales Tax Act, Non submission of 2.16 2001-02
1956 Forms
Central Sales Tax Act, Non submission of 1.83 2002-03
1956 Forms
Central Sales Tax Act, Non submission of 7.09 2003-04
1956 Forms
Bombay Sales Tax Act, Non submission of 2.75 2003-04
1956 Forms
Central Excise Act,1944 Duty on material 0.43 0ct-03
cleared after job work to
Apr-04
The Customs Act,1962 Duty and Penalty on 136.60 2002-03
import of material &
2003-04
Madhya Pradesh Demand on regular 0.27 2002-03
Commercial Tax Act,1994 assessment
Madhya Pradesh Entry Tax on Stock 0.38 2010-11
Entry Tax Act, 1976 transferd goods
Madhya Pradesh Entry Tax on Stock 0.06 2011-12
Entry Tax Act,1976 transferd goods
Income Tax Act,1961 Demand under Section 0.24 2003-04
143(3) of the lncome 1.22 2004-05
Tax Act, 1961 17.40 2007-08
20.56 2008-09
Central Sales Tax Act, Non Submission of 0.54 2006-07
1956 Forms
Name of the Statute Forum where
dispute Pending
Central Sales Tax Act, Maharashtra Sales
1956 Tax Tribunal
(Mumbai)
Central Sales Tax Act, Maharashtra Sales
1956 Tax Tribunal
(Mumbai)
Central Sales Tax Act, Deputy
1956 Commissioner,
Sales Tax, Nagpur
Bombay Sales Tax Act, Deputy
1956 Commissioner,
Sales Tax, Nagpur
Central Excise Act,1944 Assistant
Commissioner
Chindwara
The Customs Act,1962 CESTAT, Mumbai
Madhya Pradesh Assistant
Commercial Tax Act,1994 Commissioner
Commercial Tax
(Appeal) Chindwara
Madhya Pradesh Deputy
Entry Tax Act, 1976 Commissioner
Commercial Tax
(Appeal) Chindwara
Madhya Pradesh Deputy
Entry Tax Act,1976 Commissioner
Commercial Tax
(Appeal) Chindwara
Income Tax Act,1961 Commissioner of
Income Tax
(Appeal)
Central Sales Tax Act, Deputy
1956 Commissioner
Commercial Tax
(Appeal) Chindwara
For B. CHHAWCHHARIA & CO.
Chartered Accountants
Ketan Chhawchharia
Partner
Place : Nagpur Firm Registration No.305123E
Date : 29th May, 2014. Membership No. 63422
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. Bajaj Steel
Industries Limited as at 31st March, 2012, the Profit & Loss Account
and the Cash Flow Statement for the year ended on that date annexed
hereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
the financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion and we report that:
1. As required by the Companies (Auditors' Report) Order, 2003,
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred above, we report
that :
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
account;
(d) In our opinion, subject to our comments hereinafter, the Balance
Sheet, the Profit & Loss Account and the Cash Flow Statement comply
with the Accounting Standards as referred to in Sub-section (3C) of
Section 211 of the Companies Act, 1956;
(e) On the basis of the written representation received from the
Directors of the Company and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of clause
(g) of Sub Section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with Significant
Accounting Policies and Notes to the Accounts, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date, and
iii) in the case of the Cash Flow Statements, of the Cash flows of the
Company for the year ended on that date.
BAJAJ STEEL INDUSTRIES LIMITED ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 of our Report of even date for the year
ended 31st March, 2012.
(i) a) As informed, proper records showing full particulars including
quantitative details and situation of fixed assets are being compiled
by the Company.
b) According to the information and explanation given to us, all the
fixed assets including Capital work in progress have not been
physically verified by the management during the year but there is a
regular program of verification which, in our opinion, is reasonable
having regard to the size of the Company and nature of its assets. As
explained, no material discrepancies were noticed on such verification.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed substantial part of its fixed
assets during the year.
(ii) a) According to the information and explanation given to us,
physical verification of inventory has been conducted by the management
at reasonable intervals.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory.
(iii) a) The Company has not granted any loan, secured or unsecured, to
companies, firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loans from two companies covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 72.19 Lacs and the
there is no balance outstanding as at the end of the year.
c) In our opinion, the rate of interest and other terms and conditions
on which unsecured loans have been taken from such companies are, prima
facie, not prejudicial to the interest of the Company.
d) The payment of principal amounts and interest are regular as per
stipulations, wherever such stipulations exist.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weakness, if any, in internal
control system.
(v) a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 are being updated in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions that were made in pursuance of contracts
or arrangements that need to be entered into the register maintained in
pursuance of Section 301 of the Companies Act, 1956 and aggregating
during the year to Rs. 5,00,000/- or more, in respect of each party, have
been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by
Reserve Bank of India and the provisions of Sections 58A, 58AA or other
relevant provision of the Companies Act, 1956 and the rules framed
thereunder with regard to the deposits accepted from the public.
(vii) In our opinion and according to the information and explanations
given to us, the Company has a formal internal audit system
commensurate with the size of the Company and nature of its business.
(viii) As certified by a Cost Accountant, the company has maintained
cost records for the year under review, as prescribed under section
209(1)(d) of the Companies Act, 1956, read with Companies (Cost
Accounting records) Rules, 2011 to the extent applicable to the
Company. We have, however, not made a detailed examination of such
records.
(ix) In our opinion and according to the information and explanations
given to us:
a) The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material
statutory dues, as applicable, with the appropriate authorities.
b) There are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess, as applicable, which have not been
deposited on account of any dispute except as detailed in Annexure I.
(x) There are no accumulated losses in the Company and the Company has
not incurred any cash loss in the year under review or in the
immediately preceding year.
(xi) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. All the Shares and Securities held as
investments are in company's own name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company for the year
under review, we report that no funds raised on short term basis have
been used for long term investments.
(xviii) The company has not made any preferential allotment of shares
during the year under review to Companies, persons or parties covered
u/s 301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures during the year under
review.
(xx) The Company has not raised any money by public issue during the
year under review.
(xxi) As per the information and explanation given to us, an employee
of M/s Bajaj Polyblends Private Limited has misappropriated funds
amounting to Rs.18,28,327/-of Super pack division of the Company during
the year under review by having collusion with the customers. Necessary
action has been taken to recover this amount from the said employee.
he Annexure to our Report of even date for the year ended 31st March,
2012
Name of the
Statute Nature of the
Dues Amount Relating Forum where dispute
(Lacs) to the year Pending
Central
Sales Tax
Act, 1956 Non
submission
of Forms 0.44 1998-99 Deputy Commissioner,
Sales Tax, Nagpur
Central
Sales Tax
Act, 1956 Non
submission
of Forms 2.16 2001 - 2002 Maharashtra Sales
Tax Tribunal
(Mumbai)
Central
Sales Tax
Act, 1956 Non
submission
of Forms 1.83 2002-2003 Maharashtra Sales
Tax Tribunal
(Mumbai)
Central
Sales Tax
Act, 1956 Non submission
of Forms 7.92 2003-2004 Deputy
Commissioner, Sales
Tax, Nagpur
Bombay
Sales Tax
Act, 1956 Non submission
of Forms 13.76 2003-2004 Deputy Commissioner,
Sales Tax, Nagpur
Central
Excise
Act, 1944 Duty on
material
cleared after 0.43 Oct-03 Assistant
Commissioner
Job Work to Apr -
2004 Chindwara
The Customs
Act, 1962 Duty and
Penalty on
import of 136.60 2002-2003 & CESTAT, Mumbai
material 2003-2004
Madhya
Pradesh
Commercial Demand on
regular
assessment 0.27 2002 - 2003 Assistant
Commissioner,
Tax Act,
1994 Commercial Tax
Central
Sales Tax
Act, 1956 Non
submission
of Forms 0.63 2004-2005 Additional
Commissioner
of Commercial Tax,
Jabalpur
Maharashtra
Tax on
entry of Imposition
of Entry
Tax on 0.57 2009-2010 Deputy Commissioner
of
Motor
Vehicles
into local Capital
Assets Sales Tax (Appeal),
Nagpur
area Act,
1987
Income Tax
Act, 1961 Demand
under
Section 143
(3) 0.24 2003-2004 Commissiner of
Income Tax
of the
Income Tax
Act, 1961. 1.22 2004-2005 (Appeal)
31.72 2006-2007
32.06 2007-2008
50.86 2008-2009
Central
Sales
Tax
Act,1956 Non
submission
of Forms 0.54 2006-2007 Deputy Commissioner,
Commercial Tax
(Appeal) Chindwara
Place: Nagpur For B. CHHAWCHHARIA & Co.
Chartered Accountants
Date : 13.08.2012
Ketan .Chhawchharia
Partner
Firm Registration No.305123E
Membership No. 63422
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. Bajaj Steel
Industries Limited as at 31st March, 2011, the Profit & Loss Account
and the Cash Flow Statement for the year ended on that date annexed
hereto. These financial statements are the responsibility of the
CompanyÃs management. Our responsibility is to express an opinion on
the financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion and we report that:
1. As required by the Companies (Auditorsà Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred above, we report
that :
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
account;
(d) In our opinion, subject to our comments hereinafter, the Balance
Sheet, the Profit & Loss Account and the Cash Flow Statement comply
with the Accounting Standards as referred to in Sub-section (3C) of
Section 211 of the Companies Act, 1956;
(e) On the basis of the written representation received from the
Directors of the Company and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2011 from being appointed as a director in terms of clause (g) of Sub
Section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with Significant
Accounting Policies and Notes to the Accounts, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011,
ii) in the case of the Profit & Loss Account, of the Profit of the
Company for the year ended on that date, and
iii) in the case of the Cash Flow Statements, of the Cash flows of the
Company for the year ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 1 of our Report of even date for the year
ended 31st March, 2011.
(i) a) As informed, proper records showing full particulars including
quantitative details and situation of fixed assets are being compiled
by the Company.
b) According to the information and explanation given to us, all the
fixed assets including Capital work in progress have not been
physically verified by the management during the year but there is a
regular program of verification which, in our opinion, is reasonable
having regard to the size of the Company and nature of its assets. As
explained, no material discrepancies were noticed on such verification.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed substantial part of its fixed
assets during the year.
(ii) a) According to the information and explanation given to us,
physical verification of inventory has been conducted by the management
at reasonable intervals.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory.
(iii) a) The Company has not granted any loan, secured or unsecured, to
companies, firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loans from two companies covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 151.93 Lacs and the
year-end balance of such loans taken was Rs. 72.19 Lacs.
c) In our opinion, the rate of interest and other terms and conditions
on which unsecured loans have been taken from such companies are, prima
facie, not prejudicial to the interest of the Company.
d) The payment of principal amounts and interest are regular as per
stipulations, wherever such stipulations exist.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for sale of goods and
services. During the course of audit, we have not observed any
continuing failure to correct major weakness, if any, in internal
control system.
(v) a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 are being updated in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions that were made in pursuance of contracts
or arrangements that need to be entered into the register maintained in
pursuance of Section 301 of the Companies Act, 1956 and aggregating
during the year to Rs. 5,00,000/- or more, in respect of each party,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has complied with the directives issued by
Reserve Bank of India and the provisions of Sections 58A, 58AA or other
relevant provision of the Companies Act, 1956 and the rules framed
thereunder with regard to the deposits accepted from the public.
(vii) In our opinion and according to the information and explanations
given to us, the Company has a formal internal audit system
commensurate with the size of the Company and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under Section 209(1)(d) of the Companies Act, 1956 for any of
the products of the Company.
(ix) In our opinion and according to the information and explanations
given to us:
a) The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employeesà State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues,
as applicable, with the appropriate authorities.
b) There are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess, as applicable, which have not been
deposited on account of any dispute except as detailed in Annexure I.
(x) There are no accumulated losses in the Company and the Company has
not incurred any cash loss in the year under review or in the
immediately preceding year.
(xi) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. All the Shares and Securities held as
investments are in companyÃs own name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company for the year
under review, we report that no funds raised on short term basis have
been used for long term investments.
(xviii) The company has during the year made preferential allotment of
shares to Companies Covered u/s 301 of the Companies Act, 1956, but the
price at which the shares have been allotted is prima facia, not
prejudicial to the interest of the Company.
(xix) The Company has not issued any debentures during the year under
review.
(xx) The Company has not raised any money by public issue during the
year under review.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
Annexure 1 as referred in clause [ix (b)] of the Annexure to our Report
of even date for the year ended 31st March, 2011
Name of the Statute Nature of the Dues Amount
(Lacs)
Central Sales Tax Act, 1956 Non submission of Forms 0.44
Central Sales Tax Act, 1956 Non submission of Forms 2.16
Central Sales Tax Act, 1956 Non submission of Forms 1.83
Central Sales Tax Act, 1956 Non submission of Forms 7.92
Bombay Sales Tax Act, 1956 Non submission of Forms 13.76
Central Excise Act, 1944 Duty on material cleared 0.43
after Job Work
The Customs Act, 1962 Duty and Penalty on 136.60
import of material
Madhya Pradesh Commercial Demand on regular 0.27
Tax Act, 1994 assessment
Central Sales Tax Act, 1956 Non submission of Forms 0.63
Maharashtra Tax on entry of Imposition of Entry Tax on 0.87
Motor Vehicles into local Capital Assets
area Act, 1987
Income Tax Act, 1961 Demand under Section 143(3) 0.24
of the Income Tax Act, 1961. 1.22
31.72
32.06
62.39
Central Sales Tax Act,1956 Non submission of Forms 0.82
Name of the Statute Relating Forum where dispute
to the year Pending
Central Sales Tax Act, 1956 1998-99 Deputy Commissioner,
Sales Tax, Nagpur
Central Sales Tax Act, 1956 2001 - 2002 Maharashtra Sales Tax
Tribunal (Mumbai)
Central Sales Tax Act, 1956 2002-2003 Maharashtra Sales Tax
Tribunal (Mumbai)
Central Sales Tax Act, 1956 2003-2004 Deputy Commissioner,
Sales Tax, Nagpur
Bombay Sales Tax Act, 1956 2003-2004 Deputy Commissioner,
Sales Tax, Nagpur
Central Excise Act, 1944 Oct-03 Assistant Commissioner
to Apr-2004 Chindwara
The Customs Act, 1962 2002-2003 & CESTAT, Mumbai
2003-2004
Madhya Pradesh Commercial 2002 - 2003 Assistant Commissioner,
Tax Act, 1994 Commercial Tax
Central Sales Tax Act, 1956 2004-2005 Additional Commissioner
of Commercial Tax,
Jabalpur
Maharashtra Tax on entry of 2009-2010 Deputy Commissioner of
Motor Vehicles into local Sales Tax (Appeal),
area Act, 1987 Nagpur
Income Tax Act, 1961 2003-2004 Commissiner of Income Tax
2004-2005 (Appeal)
2006-2007
2007-2008
2008-2009
Central Sales Tax Act,1956 2006-2007 Deputy Commissioner,
Commercial Tax (Appeal)
Chindwara
For B. CHHAWCHHARIA & CO.
Chartered Accountants
P.K.Chhawchharia
Partner
Firm Registration No.305123E
Membership No. 50786
Place : Nagpur
Date : 09.08.2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. Bajaj Steel
Industries Limited as at 31s1 March, 2010, the Profit & Loss Account
and the Cash Flow Statement for the year ended on that date annexed
hereto These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on
the financial statements based on our audit,
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement. An audit
includes examining, on a test basts. evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion and we report that:
1. As required by the Companies (Auditors Report) Order, 2003, issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said order.
2. Further to our comments in the Annexure referred above, we report
that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of such
books;
(c) The Balance Sheet, the Profit & Loss Account and the Cash Flow
Statement referred to in this report are in agreement with the books of
account;
(d) In our opinion, subject to our comments hereinafter, the Balance
Sheet, the Profit & Loss Account and the Cash Flow Statement comply
with the Accounting Standards as referred to in Sub-section (3C)of
Section 211 of the Companies Act, 1956;
(e) On the basis of the written representation received from the
Directors of the Company and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 315 March,
2010 from being appointed as a director in terms of clause (g) of Sub
Section (1) of Section 274 of the Companies Act, 1956;
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read with Significant
Accounting Policies and Notes to the Accounts, give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India :
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st
March, 2010, ii) in the case of the Profit & Loss Account, of the
Profit of the Company for the year ended on that date, and
iii) in the case of the Cash Flow Statements, of the Cash flows of
the Company for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Referred to in paragraph 1 of our Report of even date for Ihe year
ended 31s1 March, 2010.
(i) a) As informed, proper records showing full particulars including
quantilative details and situation of fixed assets are being compiled
by the Company.
b) According to the information and explanation given to us, all the
fixed assets including Capital Work in progress have not been
physically verified by the management during the year but there is a
regular program of verification which, in our opinion, is reasonable
having regard to the size of the Company and nature of its assets. As
explained, no material discrepancies were noticed on such verification.
c) In our opinion and according to the information and explanations
given to us, the Company has not disposed substantial part of its fixed
assets during the year.
(ii) a) According to the information and explanation given to us,
physical verification of inventory has been conducted by the management
at reasonable intervals.
b) In our opinion, the procedure of physical verification of inventory
followed by the management is reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification of
inventory.
(iii) a) The Company has not granted any loan, secured or unsecured, to
companies, firms or parties covered in the register maintained under
section 301 of the Companies Act, 1956.
b) The Company has taken unsecured loans from four companies and one
party covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved during the year was Rs
117.34 Lacs and the year-end balance of such loans taken was Rs.0.02
Lacs, which has since being repaid.
c) In our opinion, the rate of interest and other terms and conditions
on which unsecured loans have been taken from such companies and
parties are, prima facie, not prejudicial to the interest of the
Company.
d) The payment of principal amounts and interest are regular as per
stipulations, wherever such stipulations exist.
(iv) in our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with
regard to purchase of inventory and fixed assets and for sale of goods
and services. During the course of audit, we have not observed any
continuing failure to correct major weakness, if any, in internal
control system.
(v) a) According to the information and explanations given to us, the
particulars of contracts or arrangements referred to in section 301 of
the Companies Act, 1956 are being updated in the register required to
be maintained under that section.
b) In our opinion and according to the information and explanations
given to us, the transactions that were made in pursuance of contracts
or arrangements that need to be entered into the register maintained in
pursuance of Section 301 of the Companies Act, 1956 and aggregating
during the year to Rs.5,00,000/- or more, in respect of each party,
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has
complied with the directives issued by Reserve Bank of India and the
provisions of Sections 58A, 58AA or other relevant provision of the
Companies Act, 1956 and the rules framed thereunder with regard to the
deposits accepted from the public.
(vii) In our opinion and according to the information and explanations
given lo us, the Company has a formal internal audit system
commensurate with the size of the Company and nature of its business.
(viii) The Central Government has not prescribed maintenance of cost
records under Section 209(1 )(d) of the Companies Act, 1956 for any of
the products of the Company.
(ix) In our opinion and according to the information and explanations
given to us:
a) The Company is generally regular in depositing undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees State Insurance. Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty, Excise Duty, Cess and other material statutory dues,
as applicable, with the appropriate authorities.
b) There are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty and Cess, as applicable, which have not been
deposited on account of any dispute except as detailed in Annexure I.
(x) There are no accumulated losses in the Company and the Company has
not incurred any cash loss in the year under review or in the
immediately preceding year.
(xi) In ouropinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to
financial institutions or banks.
(xii) According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi mutual benefit
fund/society.
(xiv) The Company is not dealing in or trading in shares, securities,
debentures and other investments. All the Shares and Securities held as
investments are in companys own name.
(xv) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purpose for which
they were obtained,
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company for the year
under review, we report that no funds raised on short term basis have
been used for long term investments.
(xviii) The Company has not made any preferential allotment of shares
during the year under review.
(xix) The Company has not issued any debentures during the year under
review.
(xx) The Company has not raised any money by public issue during the
year under review.
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
year.
Annexure 1 as referred in clause [ix (b)] of Ihe Annexure to our Report
of even dale for the year ended 31st March, 2010
Name of the
Statute Nature of the
Dues Amount Relating Forum where
(Lacs) to the year dispute
Pending
Central Sales
Tax Act. 1956 Non submission
of Forms 0 44 1998-99 Deputy
Commissioner.
Sales Tax, Nagpur
Central Sales
TaxAct, 1956 Non submission
of Forms 2.41 2001-2002 Deputy
Commissioner.
(Appeals)
Central Sales
Tax Act, 1956 Non submission
of Forms 4.25 2002-2003 Joint
Commissioner,
(Appeals), Nagpur
Central Sales
TaxAct, 1956 Non submission
of Forms 7.92 2003-2004 Joint
Commissioner,
(Appeals), Nagpur
Bombay Sales
Tax Act, 1956 Non submission
of Forms 13.76 2003-2004 Joint
Commissioner,
(Appeals), Nagpur
Central Excise
Act, 1944 Duty on material
cleared 0.43 Oc(-03 Assistant
after Job Work to Commissioner,
Apr - 2004 Chhindwara
The Customs
Act, 1962 Duty and
Penalty
on import 136.60 2002-2003 & Tribunal, Mumbai
of material 2003-2004
Madhya Pradesh
Commercial Demand on
regular 0.27 2002 - 2003 Assistant
TaxAct, 1994 Assessment Commissioner,
Commercial Tax
Central Sales
Tax Act, 1956 Non submission
of Forms 0.63 2004-2005 Additional
Commisioner of
Commercial Tax
Jabalpur
Central Excise
Act, 1944 MODVAT Credit
on dead 6.14 2001-2002 to CESAT
raw material
Stock 2005-2006 New Delhi
Central Sales
Tax Act, 1956 Non submission
of Forms 0.82 2006-2007 Deputy
Commissioner,
Commercial Tax
(Appeal)
Chhindwara
For B. CHHAWCHHARIA & CO.
Chartered Accountants
Place : Nagpur P. K. CHHAWCHHARIA
Date : 29th, July 2010 Partner
Firm Registration No,305123E
Membership No. 50786